IO Monthly Update - April 2015
Israel Opportunity's Latest Announcements
  • Israel Opportunity and Benny Steinmetz raise 'Pelagic' holdings
On April 19th, 2015, the partners in 'Pelagic' Licenses – Israel Opportunity Energy Resources LP, Nammax Oil & Gas Limited, Frendum Investments Limited and Eden Energy Discoveries (controlling shareholder in Frendum), have reached a settlement agreement, whereby Israel Opportunity will increase its holdings in the mentioned licenses to 16% and Nammax will Increase its holdings to 60%. After the transfer of rights, 'Pelagic' Licenses' partners and holdings will be as follows: Israel Opportunity – 16%; Nammax– 60%; Frendum – 10%; Daden Investment Ltd. – 9%; AGR Petroleum Services Holdings AS – 5%. Transfer of rights shall take effect after receiving approvals from the Petroleum Commissioner and the Antitrust Commissioner (if required).

Industry Updates
  • Israel authorizes gas export from Tamar to Jordan
On April 2nd, 2015, the partners in Tamar reservoir reported that the Prime Minister, Minister of National Infrastructures, Energy, and Water Resources and the Petroleum Commissioner licensed the export of gas from Tamar to private customers in Jordan. Under the agreement, Israel will export 1.8 BCM for 15 years for $500 million to enterprises on the Jordanian side of the Dead Sea. The supply agreement includes a number of other prerequisites, namely acceptance of additional regulatory approvals in Israel and Jordan.

  • IEC to take up $6b option for Tamar gas
According to publications by the Tamar partners, Israel Electric Corporation (IEC) will partially exercise its option to increase the quantity of gas it is to buy from the Tamar reservoir, from 2020 and onward. IEC and the Tamar partners signed a gas supply contract in 2012, in which the partnership undertook to supply 42.5 BCM, up to a maximum of 77 BCM, over 15 years. The agreement included an option to increase the amount of gas to 99 BCM in two installments, whereas the anticipated effects of the partial exercise is that the overall maximum amount for delivery will be ~87 BCM.

Regional Events
  • Gas pipline from Russia to Europe on Greek Territory
According to publications by Calcalist and RT, Russia and Greece are expected to sign an agreement concerning the construction of a gas pipeline linking the Turkish stream with the pipeline systems of Central Europe, meaning an energy center and gas pipeline from Russia to Europe will be built on Greek territory. The pipeline’s capacity is expected to be 63 billion cubic meters of gas, with 50 billion cubic meters delivered to the new gas hub on the Turkish-Greek border. Delivery is scheduled to begin in December 2016.

The materials and information included in this newsletter are provided as a service to you by Israel Opportunity Oil & Gas Exploration Ltd. ("the Company") and the Company or any of its subsidiaries are not responsible for the accuracy and completeness of information provided herein. The information provided herein is not advice of any kind, and should not be treated as such.
The Company will not be liable to you in respect of any special, indirect or consequential loss or damage with respect to relying on the information herein.
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